SFO Cargo Facility Plans Prompt Lawsuit

SAN FRANCISCO-Airis Holdings LLC is suing San Francisco International Airport to protect its right to develop a $200-million air cargo facility on airport property. The suit seeks to stop any alternatives being sought for the project and recoup in excess of $4 million in costs Airis claims it spent in pursuing the project.The Texas-based aviation developer’s plan to build and operate a 633,000-sf cargo and office building was approved by the Airport Commission in October, in part because it did not want to have to front the money for the project when it was already billions of dollars in debt. However, the agreement was rejected by the San Francisco Board of Supervisors in December following a recommendation by San Francisco Budget Analyst Harvey Rose that SFO should develop the facility on its own and thereby retain the majority of the revenue from the development. Earlier this month, the Airport Commission got on board with the idea, passing a resolution essentially opening the door for SFO to pursue the project independently.SFO spokesperson Mike McCarran tells GlobeSt.com he cannot comment on pending litigation, but says any negotiating deal with the Airport Commission of significant value must be signed off on by the San Francisco Board of Supervisors in order to be binding. Airis claims the Airport Commission’s October decision gives it the exclusive right to negotiate and develop the facility.Airis says its proposal would free SFO from the risk of developing the facility over the 30-year term of the lease while generating $200 million in direct rental revenue for the airport and $100 million in indirect revenue from landing and parking fees for the airport, the city and the county.”We have tried at every opportunity to work with SFO executive staff to come to a mutually beneficial solution,” says Airis Holdings president Ronald Factor. “Our attempts have been shunned by the Airport staff, and we feel that they have left us no choice but to protect our rights through legal recourse. We are, never the less, committed to this project and to bringing a world-class air cargo facility to SFO.”